Indonesia c.bank buys bonds, first burden-sharing transaction

Bank Indonesia and the government had agreed on a $40bln debt monetization scheme

  

JAKARTA- Indonesia's central bank has bought 82.1 trillion rupiah ($5.63 billion) of government bonds in a private placement, the first transaction under a COVID-19 burden-sharing scheme with the government, Finance Ministry said in a statement on Thursday.

Bank Indonesia and the government had agreed on a $40 billion debt monetisation scheme, with the central bank pledging to buy $28 billion of bonds while relinquishing interest payments.

The government has promised faster stimulus spending to tackle the impact of the pandemic. The economy contracted 5.32% year-on-year in the second quarter, the first quarterly contraction in over two decades. 

($1 = 14,580.0000 rupiah)

(Reporting by Tabita Diela; Writing by Fransiska Nangoy; editing by John Stonestreet ) ((tabita.diela@thomsonreuters.com; +628111135032;))

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